Muthoot Fincorp To Focus On SMES In TS For Gold Loans
Kerala-based Muthoot Fincorp said it will focus on SME segment as well as retail customers in Telangana for its gold loan products.
The average ticket size of gold loan is about Rs 35,000 and the loan is disbursed in about 10 to 12 minutes. The MSME loan amount varied from Rs 15,000 to Rs 3 lakh, according to Vasudevan Ramaswami, Chief Operating Officer, Muthoot Fincorp Limited.
The company expects to maintain similar growth (of about 16 per cent) as last year during the current financial year in its assets under management (AUM), which now stands at about Rs 12,300 crore.
It disbursed about Rs 27,000 crore last fiscal with over 90 per cent of it going towards gold loan he said.
Muthoot Fincorp has over 3,600 branches in India and about 70 per cent of them are in southern markets.
It has 265 branches in Telangana and 317 in Andhra Pradesh and will now expand in the region subject to approvals, he said adding that it has plans for opening another 60-plus branches in Telangana and AP. In these two States, the company has registered AUM growth of 18.6 per cent in the current year (YTD) as compared to last year, he added.
In September 2019, Muthoot Fincorp issued non-convertible debentures (NCDs) to raise Rs 500 crore (including Rs 250 crore greenshoe option).
The funds raised would primarily be used as working capital to enhance lending, he said.
It has about 19 lakh customers across the country.